P3 Components - Operations

Transferring risks for service operations to the private sector commits it to operating or providing services for a period of time (i.e. 10, 20 or 30 years). For example, a consortium may be contracted to operate a water treatment plant, to provide transit services or to collect road tolls. Despite having a private operator, in the Canadian context, the infrastructure remains publicly owned.

Why integrate service operations in a P3 project?

The private sector commits to:

meet public sector specifications

include the operator in the planning process to ensure a seamless and more effective operation of services

integrate operational best practices into a project’s planning and execution

allow for greater synergy between design and operation of the asset

set clear performance standards (for system up-time, customer service and quality of outputs), which are often non-existent under public operation

bring international operational expertise from other projects to maximize efficiencies (may be lacking on the public sector side, especially in smaller municipalities)

bring state-of-the-art monitoring and control systems that help automate previous manual processes and improve reporting information